With demand remaining strong, a slower pace won’t have any impact on costs

Ashley Ford
Province

Lower Mainland housing starts have dipped for the second month in a row, but there is nothing to be alarmed about, industry insiders say.

And the dip won’t have any impact on housing costs.

The new housing market is tight and will remain that way for the foreseeable future, they say.

The latest Canada Mortgage and Housing Corp. numbers released yesterday show that Lower Mainland housing starts declined 35 per cent in September to 1,300 from 1,991 a year ago.

Single-family-home starts dropped by six per cent, to 502 units from 532 in 2005, and multiple-family home starts slid 45 per cent, to 798 units from 1,459.

But, so far this year, there have been 14,737 housing starts, up six per cent from 13,933 a year ago.

Total single starts increased by 22 per cent to 4,508 units while multiples are practically the same as they were a year ago at 10,229.

“This dip is actually welcome news to the construction sector and brings a little relief from the hectic pace,” said Peter Simpson, CEO of the Greater Vancouver Home Builders Association.

“The demand for new housing remains very strong and we are still running six per cent ahead of last year’s starts,” he said.

“The current market is turning out exactly as we predicted at the beginning of the year. We projected a slightly slower year and that is what is now happening,” he said. “There’s nothing here I am worried about.”

CMHC senior market analyst Cameron Muir agreed. “In spite of low new-home inventories, builders and developers are hard-pressed to continue increasing the number of housing starts,” Muir said.

Muir said other factors at play include limited developable land, a trend to more complicated mixed-use developments and the ongoing competition for skilled workers.

These are significant constraints to producing more than 21,000 housing starts per year, he said, adding that “these factors may alleviate fears of overbuilding but consumers will continue to be faced with rising new-home prices.”

Across the rest of Canada, housing starts unexpectedly dropped to 211,300 units in September, down slightly from 216,600 in August.

But the new-home market continues to fare better in Canada than south of the border.

Economists said the decline was attributable to the volatile multiple-starts segment — consisting of condominiums, rental apartments and townhouses — which fell to their lowest level since July 2004.

That stood in sharp contrast to single-family units, a more stable housing measure, which edged upward in September for the fourth straight month, reflecting fundamental strength in the housing market, CMHC said.

“Certainly, the singles suggest the game isn’t over yet,” said Bart Melek, senior economist with BMO Capital Markets.

“At the end of the day, anything over 200,000 [units] in Canada is indicative of a very strong housing market.” [email protected]

© The Vancouver Province 2006

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As owners upgrade, renters fight burgeoning evictions

Frances Bula
Sun

As owners upgrade, renters fight burgeoning evictions Affordable housing has disappeared or is coming under threat at an alarming rate during the past year. It’s a trend that has local municipalities scrambling

Affordable housing has disappeared or is coming under threat at an alarming rate during the past year, as the three-storey walk-ups and mobile homes that provide some of the Vancouver region’s lowest-cost housing are torn down or made over to get higher rents.

It’s a trend that has local municipalities scrambling to find ways to stop demolitions and invent new ways to encourage construction of low-cost rental housing. It has also prompted a wave of citizen activism and even legal battles over what are called “economic evictions” — tenants who are forced out so landlords can do upgrades and then rent the properties for dramatically more money.

In Richmond and Vancouver, tenants are fighting evictions, while planners are hurriedly drafting policies to try to protect existing rental stock. Richmond declared a temporary moratorium on demolitions and conversions in July.

In Coquitlam, Port Moody and along the Sea to Sky Highway, low-income residents of trailer parks have lost their long-time homes.

In North Vancouver city, councillors passed a motion last week to require that council be notified about any proposed demolition and that staff look for ways the city can keep a lid on losses of affordable rentals.

“We’ve had four demolitions in the last couple of years and I think it’s the leading edge of a tidal wave that’s coming,” said North Vancouver Coun. Bob Fearnley.

Verna Semotuk, a Greater Vancouver Regional District planner who deals with housing issues, says it’s a regionwide problem.

“We’re hearing about this everywhere: Maple Ridge, the northeast sector, Burnaby, the North Shore, Richmond. There is great concern about redevelopment pressure.”

In Vancouver five low-cost apartment buildings currently face demolition, all to be replaced with much higher-end and, in some cases, fewer units. The city is also seeing tenants being evicted so landlords can renovate and rent for significantly higher amounts.

While Vancouver doesn’t have jurisdiction over rent control issues, it has policies to try to prevent demolitions or conversions — policies it is now looking to strengthen.

“The rental stock we have is a finite supply,” said Vancouver planner Rob Whitlock, who is drafting a new policy. “If there’s five-per-cent turnover every year, in 20 years time, it will be all gone. We are quite nervous.”

But everyone is struggling over a difficult situation with no easy answers. Investors by and large stopped building rental apartments in the late 1970s, after the federal government removed tax incentives that had encouraged a post-war boom in apartment buildings.

That stock is now up to 40 or 50 years old with no replacement in sight. And developers, encouraged by years of low mortgage rates and an apparently insatiable market of condo buyers, are on the hunt for under-used sites where they can build and sell quickly.

© The Vancouver Sun 2006

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Alterations to home may require approval, permits

Tony Gioventu
Province

Dear Condo Smarts:

We live in a three-bedroom townhouse unit with an unfinished basement. The basement hosts our gas furnace, gas hot water tank and central vacuum, all installed by the developer.

My husband started installing walls in the basement to make a family room, guest room and a home office. The strata council told us we can’t make the changes until the plans are approved at their next council meeting, and they require that we sign a waiver so the strata has no liability for anything in the basement.

I thought in a townhouse it was ours and we could do what we wanted. Who has to insure the basement?

— Debbie Martins, Vancouver Island

Dear Debbie:

Remember the old line, your home is your castle?

Well, not so true in strata living. Your home is for your exclusive use, but the original construction is part of the strata assets, and anything that requires structural alterations in a strata lot usually requires the written approval of the strata.

Before any townhouse owner makes structural changes to their strata lots they need to check the strata plan and their bylaws.

Make sure whether or not the area is even part of your strata lot. Basements and attics can frequently be common or limited common property, and there can be additional limitations in the bylaws, or even prohibitions on the alterations.

Some renovations, like painting, carpet changes, and new electrical fixtures are purely cosmetic and may not require prior approval.

However, many other alterations not only require approval but they also require building permits. Finishing a basement or an attic for a bedroom or playroom has significant safety concerns, such as fire safety and emergency exits.

Is there sufficient ventilation and fire-proofing in the basement for the operation of your furnace and hot water tank?

As a condition of the alterations, most bylaws require that owners take responsibility for the alterations and costs associated with those alterations.

The basic building sold by the developer is insured by the strata corporation. All of the alterations are “betterments” and you need to add those to your homeowner

policy.

Here’s a common complaint of townhouse basement alterations: the walls and framing are directly nailed/screwed into the foundations and floors and the waterproofing has been breached, causing moisture and water ingress and long-term damage. Remember, before you screw or nail into any surface: What’s behind it? What’s the potential result of the breach? Do I have permission?

Tony Gioventu is the executive director of the Condominium Home Owners Association (CHOA). Contact CHOA at 604-584-2462 or toll-free 1-877-353-2462, fax 604-515-9643 or e-mail [email protected].

© The Vancouver Province 2006

Mike Holmes says it breaks his heart to read e-mails about reno disasters

Jeani Read
Province

You know that post is up to spec, or Mike Holmes wouldn’t be leaning on it.

Mike Holmes is still stunned by the extent of the home-renovation disasters he hears about.

“You should see the stories on our e-mails,” he says. “It’s just heartbreaking. It’s just terrible. It would be impossible for me to solve all the problems out there.”

The superhero of HGTV’s weekly Holmes on Homes show, who has opened our eyes to the pitfalls that can accompany home renos, has his own classification system for contractors: the good, the bad and the ugly.

“We know the ugly contractors — we can see them a mile away,” he says. “The good are 20 per cent. The bad are 70 per cent — the ones who don’t know what they’re doing and don’t care. Odds are, you’re going to get the bad.”

His experiences have made him super-cautious about the whole reno process. Here, he gives us his top tips for doing it right.

1) Take your time. “Slow down. This not McDonald’s, you’re not going to get a reno today. When people decide they want a reno, they try to get it done so fast! Don’t hurry.”

2) Educate yourself. “Find out everything you can. Go to bookstores, depot stores, online. Learn how to talk to a contractor. Learn about the products.The more you know, the safer you will be.”

3) Plan far in advance. “It will take you as long, or longer, to find a contractor as it will take to do the job.”

4) Be prepared to call in 20 different contractors and interview them individually. “Think in terms of playing slot machines: What are the chances you will win?”

5) If you have to ask for references you’re dealing with the wrong contractor. “Out of the 20 contractors, you definitely want to see a minimum of 20 references from [the one you’re most interested in]. Three references is not enough. A pro presents himself every day.”

6) You cannot ask enough questions. “Phone each and every one of the references and ask 1,001 questions. “Were they on time? Were they clean? Courteous? Did they charge more at the end of the job than you thought?”

7) And while you’re there, ask more questions. “Make sure you go and see at least five of the 20 references, and I sure hope if you want a kitchen reno you look at a kitchen job, or if you want an addition you look at an addition job.”

8) Request licensing and insurance paperwork. “The contractors who have them on the job, odds are they’re a pro. If they don’t, odds are they’re not.”

9) Make sure you have everything in writing. “How long the job will be, start and finish times, products used — and always pay in milestones, not by the week. If the framing is up, pay 10 per cent. If the electrical is done and approved, another 10 per cent, and so on.”

10) Get a permit. “The permit is the only thing you have out there to protect you. If you are unsure as to whether or not you need a permit, call the officials in your neighbourhood, or the government. If the contractor says you don’t need a permit but the government says you do, it’s the wrong contractor.”

Intimidated yet? It’s Holmes’ job to do it right — and make sure you do, too. To that end he’s publishing a book in November called Make It Right (Harper Collins, $39.95), which he says will be a “Bible” to your house, whatever age, whatever shape. “It’s about understanding your home,” he says — and includes a journey through your house the way a home inspector would do, to tips for maintaining and reno-ing — and much, much more.”

Meantime, he can’t resist giving more tips.

“Trust your instincts,” he says. “Watch out for red flags. If something seems wrong, it is. Do not accept it. If things are going wrong at the beginning, they will only get worse. And be part of your job. Don’t go to Jamaica to avoid the dust. Take before, during and after photos. You don’t have to be a jerk. But be part of the job.”

TELEVISION

HOLMES ON HOMES

When and where: Thursdays at 8 p.m. on HGTV

© The Vancouver Province 2006